Assessment of insolvency issues for the mortgage originator and trustee-issuer in securitisation programs
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There are two purposes of this article. Firstly, it examines the consequences for stakeholders, if the mortgage originator or subsequent assignee of its rights, e.g. the trustee issuer, become insolvent and considers the main legal and financial risk issues that can arise in an RMBS program in Australia. Secondly, it focuses on a qualitative assessment of the extent to which the current regulatory provisions governing the insolvency of the originator and trustee issuer either impede or facilitate the operation and growth of the RMBS market in Australia. The existing regulation for insolvency of the originator and issuer and their financial security are assessed using a "public benefit test" framework. This framework is based on the principles of social cost-benefit analysis and is used to identify an optimal RMBS legal and regulatory regime that would provide a resolution to the conflicting interests of participants in the RMBS process.
Monash University Law Review
© 2008 Monash University. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Commercial and Contract Law